DUBAI: Most stock markets in the Gulf ended higher on Sunday, amid growing optimism for a Federal Reserve interest rate cut in December, although gains were restrained by subdued oil prices.
US monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar, and financial markets are pricing in an increased likelihood of a third and final Fed rate cut this year after Thursday’s jobs data.
The delayed US employment report showed a mixed labor market picture, with non-farm payrolls rising by 119,000 in October, well above forecasts for a 50,000 gain, while the unemployment rate climbed to a four-year high.
In Qatar, the index rose 0.4 percent, led by a 3.6 percent jump in telecoms firm Ooredoo .
Last week, Ooredoo finalized its fully marketed secondary global offering of shares previously owned by the Abu Dhabi Investment Authority.
Saudi Arabia’s benchmark index finished flat, with Saudi Arabian Mining Company (Maaden) advancing 3.3 percent.
Rare earth miner MP Materials said on Wednesday it would build a refinery in Saudi Arabia for the minerals, with the US Department of Defense and state-owned Maaden, to expand Middle Eastern processing of the critical minerals.
On the other hand, oil giant Saudi Aramco lost 0.7 percent.
Oil prices extended their decline for a third session on Friday, touching a one-month low, as the US pushed for a Russia-Ukraine peace deal that could boost global oil supplies.
Outside the Gulf, Egypt’s blue-chip index was up 0.4 percent.
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